Money Market Funds
Operations and Technology
ICI Responds to Hearing on Excessive Speculation
By Stephanie Ortbals-Tibbs
November 3, 2011
ICI issued the following statement in response to today’s hearing, “Excessive Speculation and Compliance with the Dodd-Frank Act,” before the Senate’s Permanent Subcommittee on Investigations.
Investors depend on mutual funds and exchange-traded funds (ETFs) as a low-cost, highly regulated tool for building diversified portfolios to achieve their most important financial goals. Funds that offer their investors some degree of commodities exposure do so in accordance with the existing rules of the SEC and CFTC, and with the specific permission of the IRS. Unfortunately, today’s hearing overlooked virtually all of this. ICI and its members will continue to work with Congress and regulators to ensure that all fund regulation remains strong, sensible, and focused on protecting fund shareholders.
For more from ICI on funds, commodities, and investor protections, see the following links:
- ICI Viewpoints: Wall Street Journal Falls Short with Story on Funds’ Commodity Investments (April 26, 2011)
- ICI testimony: “Implementing Dodd-Frank: A Review of the CFTC’s Rulemaking Process” (April 13, 2011)
- ICI Viewpoints: ICI Letter Details Benefits of Having Diversified Funds Investing in the Futures and Swaps Markets (January 12, 2011)
- ICI resource center: Financial Services Regulatory Reform.
- ICI resource center: ETFs
- 2011 Investment Company Fact Book: Learn more about limits on leverage and other investor protections in the appendix “How U.S.-Registered Investment Companies Operate and the Core Principles Underlying Their Regulation.”
Stephanie Ortbals-Tibbs is a Director for Media Relations at ICI.